Your lender should be experienced and trustworthy. He or she should be able to explain various loan options to you, and be readily available to answer any questions you may have. Interest rates and terms are important, but even more important is working with a reliable and knowledgeable lender during your home-buying process. Often the best source for a lender is your real estate agent or family and friends.

Next meet with that lender and get pre-approved. This is simpler than it sounds, and usually only takes an hour or so. The lender will order your credit report, which will affect your loan program and interest rate. After the lender has all your documentation you will receive a “pre-approval letter,” stating you are personally approved for a mortgage, subject to the appraisal and the title report of the home you choose.